Outsourcing is a practice that is high on rise with the increase of entrepreneurship and self employed individuals in business. With the number of start ups being high, it is acceptable and appropriate means to make ends meet. For example, if a new start up decides to hire an in-house accountant it will be expensive and they will be unable to show finds funds to fund the expensive habit. However, if they outsource the work until they are developed and grown up enough to handle recruitment like that, then the company is more likely to run smoothly.
In blue collar jobs
When you are planning to get some work done on your house or any other place, you need to make sure you will be able to find labour hire near you. However, you would not have to worry about this if you hire a contractor to get the job done. You might be unwilling to give it a chance because they might have higher rates, but the positive thing about hiring them is that they will get the work done on the said time and they will be able to find labourers.
They would know where you will be able to find employees looking for skilled labourer jobs. However, you might not have such information. In addition to that when you hire a contractor, they will take care of the hiring process, salary or payroll, tax and other relevant issues. This is an important advantage of hiring a contractor apart from them trying to get the work done on time is that you do not have to be involved in everything, you can just facilitate them and oversee the project.
In white collar jobs
In white collar jobs mainly in companies, companies use third parties party company not only for their services like cleaning, accounting and similar other things but also for hiring their employees. Most company would have a contract with the third party company which will do all the recruitment for the mother company whereby the employees and the mother company will not have direct link. This is to avoid unnecessary cases claiming benefits or any other matter. However, legally, it can be argued as something wrong or even illegal because it is done to ensure that the employee does not have any real rights or power with the company they are working for. In addition to that, there is no job security since the mother company can always terminate its contract with the third party company and just pay the money for the breach.In conclusion, it can be seen that outsourcing is an up and coming concept with its own advantages and disadvantages. You need to make sure that it is not misused to infringe someone’s rights.